Prior to liquidation, the following information relates to the partnership: Partnership trial balance: Partnership trial balance: Partner Capital Cash Other Assets Liabilities Adams Beyer Chenery $25,000 Profit and loss percentages $240,000 30% $200,000 30% $50,000 40% $(10,000) $25,000 On June 30, other assets with a book value of $160,000 were sold for $120,000, and all available cash with the exception of $20,000 was used to reduce the partnership liabilities. At that time, partners with debit (deficit) capital balances were required to contribute additional capital to whatever extent possible. On July 28, the remaining assets of the partnership were sold for $10,000. Once again, partners with debit (deficit) capital balances were required to contribute additional capital to whatever extent possible. Net personal assets of the partners were as follows: Adams Beyer CheneryJune 30 balances:Partner personal assets . . . . . $44,000 $31,000 $52,000Partner personal liabilities . . . 36,000 25,000 30,000July 28 balances:Partner personal assets . . . . . 30,000 22,000 49,000Partner personal liabilities . . . 22,500 17,000 27,000Assuming that the unsatisfied partnership creditors first look to Adams for satisfaction and then to Chenery, determine the amount to be contributed by each partner to satisfy the creditors.
Prior to liquidation, the following information relates to the
| Partnership trial balance: | Partner Capital | ||||
| Cash | Other Assets | Liabilities | Adams | Beyer | Chenery |
|
$25,000 |
$240,000 30% |
$200,000 30% |
$50,000 40% |
$(10,000)
|
$25,000
|
On June 30, other assets with a book value of $160,000 were sold for $120,000, and all available cash with the exception of $20,000 was used to reduce the partnership liabilities. At that time, partners with debit (deficit) capital balances were required to contribute additional capital to whatever extent possible. On July 28, the remaining assets of the partnership were sold for $10,000. Once again, partners with debit (deficit) capital balances were required to contribute additional capital to whatever extent possible. Net personal assets of the partners were as follows:
Adams Beyer Chenery
June 30 balances:
Partner personal assets . . . . . $44,000 $31,000 $52,000
Partner personal liabilities . . . 36,000 25,000 30,000
July 28 balances:
Partner personal assets . . . . . 30,000 22,000 49,000
Partner personal liabilities . . . 22,500 17,000 27,000
Assuming that the unsatisfied partnership creditors first look to Adams for satisfaction and then to Chenery, determine the amount to be contributed by each partner to satisfy the creditors.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
